Technology
Cloudflare's Q2 FY2026 featured strong revenue growth and improved customer retention, but a large restructuring charge drove a steep net loss as the company pivots toward an AI-first operating model.
Key risk: Persistent Net Losses and Unlikelihood of Near-Term Profitability
Cloudflare has incurred net losses in every period since inception, including a net loss of $170.0 million in Q2 FY2026, and held an accumulated deficit of $1.3978 billion. Rising operating expenses may prevent the company from achieving or sustaining profitability.